GST on Renting of Residential Property

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This discussion clarifies the Goods and Services Tax (GST) implications when renting residential property. If a landlord is GST-registered and rents to a GST-registered tenant, GST is applicable, with the tenant liable to pay under the reverse charge mechanism. However, if the tenant is unregistered or uses the property for personal use, the rental is generally exempt from GST, even if the landlord is registered.

k.b.nagesharao

k.b.nagesharao (Querist)
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18 July 2022 Dear Sirs,
If a person registered under gst and let out residential property is it a must to rise Gst invoice
to tenants if the Tenant is registered under gst. If not registered under Gst act who have to pay
GST. Kindly clarify me Sir. Thanks in Advance.

Regards,
K.B .Nagesha rao

Dhirajlal Rambhia

Dhirajlal Rambhia (Expert)
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18 July 2022 1. If the supplier (landlord/lessor) is registered under GST, then it will be shown as outward supplies liable to be taxed under the reverse charge mechanism. Liability to pay GST is on the recipient(tenant/lessee) hence no additional GST liability.
2. GST will not be applicable if the residential property is rented out to an unregistered person under GST w.e.f. 18th July 2022.

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k.b.nagesharao

k.b.nagesharao (Querist)
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18 July 2022 Dear Sir,
Thanking you for your valuable Reply, If the tenant is unregistered and use the unit for his personal use ,still the Land lord having GST Registered person will land lord have to pay gst on reverse charge. Kindly clarify sir,
Thanking you,

Dhirajlal Rambhia

Dhirajlal Rambhia (Expert)
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18 July 2022 No. it will still be exempt supply for registered landlord.
The RCM is applicable over tenant, provided he is registered.

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k.b.nagesharao

k.b.nagesharao (Querist)
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18 July 2022 Thank you very much Sir

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Dhirajlal Rambhia

Dhirajlal Rambhia (Expert)
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18 July 2022 Most Welcome ..

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